http://en.wikipedia.org/wiki/Ben_BernankeIn 2002, following coverage of concerns about deflation in the business news, Bernanke gave a speech about the topic. In that speech, he mentioned that the government in a fiat money system owns the physical means of creating money. Control of the means of production for money implies that the government can always avoid deflation by simply issuing more money. He said "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost." (He referred to a statement made by Milton Friedman about using a "helicopter drop" of money into the economy to fight deflation.) Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter printing press." In a footnote to his speech, Bernanke noted that "people know that inflation erodes the real value of the government's debt and, therefore, that it is in the interest of the government to create some inflation."
QE3?
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superfrank
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He's supposed to be an expert on the Great Depression... so much so that he's going about creating a second one.
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superfrank
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No interest rate rises until unemployment drops and the economy grows, says Mervyn King
http://www.dailymail.co.uk/news/article ... -King.html
http://www.dailymail.co.uk/news/article ... -King.html
I think someone needs to remind this cretin that it was cheap money fuelling an asset price boom that caused the financial crisis!!!Sir Mervyn also indicated yesterday that a large cash injection directly into the economy to boost asset prices and spending was possible.
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superfrank
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30.Ferru123 wrote:So that rules out an increase in interest rates for at least the next 3 years then...superfrank wrote:No interest rate rises until unemployment drops and the economy grows, says Mervyn King
Jeff
What would happen if the US went broke?
http://uk.finance.yahoo.com/news/What-h ... 1.html?x=0
"If you have $14 trillion in debt, you shouldn't anger your creditors."
http://uk.finance.yahoo.com/news/What-h ... 1.html?x=0
"If you have $14 trillion in debt, you shouldn't anger your creditors."
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superfrank
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They are broke.
US jobs creation stalls in June
http://www.bbc.co.uk/news/business-14081789
QE3 nailed on now.
US jobs creation stalls in June
http://www.bbc.co.uk/news/business-14081789
QE3 nailed on now.
I like the following bit of obsfucation from President Obama:superfrank wrote:They are broke.
US jobs creation stalls in June
http://www.bbc.co.uk/news/business-14081789
QE3 nailed on now.
"We have added two million new private sector jobs over the last 16 months, but the recession cost us 8 million"
So in other words, unemployment has risen by 6 million people, Mr President?
Jeff
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superfrank
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Obama, like all senior politicians, is only interested in his 'legacy'. 'didn't do Blair much good.
self interest and short-termism... a recipe for financial disaster.
self interest and short-termism... a recipe for financial disaster.
A funny exchange between Mr Bernanke and a senator who tells him some home truths:
http://www.youtube.com/watch?v=2NJnL10v ... r_embedded
Jeff
http://www.youtube.com/watch?v=2NJnL10v ... r_embedded
Jeff
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superfrank
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Ron Paul is a top man, one of a few decent ones.
Ron Paul: "Do you think gold is money?"
Bernanke: [big pause], "No".
Ron Paul: "Why do people hold gold and diamonds?"
Bernanke: "It's tradition".
Brilliant. You couldn't make it up.
As RP said, they could have given the printed money to each American citizen ($17,000 each) and achieved a better outcome. But they obviously thought it better to give it to their friends who caused the whole mess in the first place.
Ron Paul: "Do you think gold is money?"
Bernanke: [big pause], "No".
Ron Paul: "Why do people hold gold and diamonds?"
Bernanke: "It's tradition".
Brilliant. You couldn't make it up.
As RP said, they could have given the printed money to each American citizen ($17,000 each) and achieved a better outcome. But they obviously thought it better to give it to their friends who caused the whole mess in the first place.
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superfrank
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- Joined: Fri Aug 14, 2009 8:28 pm
QE2 wearing off...
US economy: GDP growth much weaker than thought
http://www.bbc.co.uk/news/business-14344671
US economy: GDP growth much weaker than thought
http://www.bbc.co.uk/news/business-14344671
It will be interesting to see how things pan out after whatever is decided between now and Tuesday.superfrank wrote:QE2 wearing off...
US economy: GDP growth much weaker than thought
http://www.bbc.co.uk/news/business-14344671
It still seems unlikely IMHO that the US will default, but whether the compromise agreement that will probably be reached will be strong enough to retain the confidence of the financial markets remains to be seen...
Jeff
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superfrank
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I don't like to crow!, but it's going well so far...superfrank wrote:Sat Jun 04, 2011 12:39 pm
This is how I reckon it will play out...
- more weak economic data as QE2 wears off through the summer.
- oil and equities under pressure and some sharp falls similar to what happened in 2008.
- political pressure mounts as people demand that "something must be done" (crybaby capitalists as Gerald Celente calls them).
- the govt. and FED cave in and QE3 begins (maybe not called QE this time, for political reasons, but essentially the same thing - cheap/free money).
Who said that fundamental trading is dead?!
I reckon that trend followers did better today than fundamental traders...superfrank wrote: Who said that fundamental trading is dead?!
Jeff
PS On the topic of QE, it was interesting that the B of E didn't rule out QE on this side of the pond when they announced today that interest rates would be at an historic low for the 29th month in a row...
